Scripscan:Tilaknagar Industries Ltd
BSE code:507205
cmp:32
Dated: 10th October 2011
Tilaknagar Industries Ltd. engages in the manufacture and sale of various alcoholic beverages primarily in India. Its products include whisky, brandy, rum, vodka, and gin, as well as Indian made foreign liquors. The company markets whisky under the Mansion House, Senate Royale, BlacPower, Senate, White House Premium, Castle Club, Classic, TI Bachelor Deluxe, TI Golden Chariot, Royal Choice, Hottt Silk, and Shot names; brandy under the Mansion House French, Courrier Napoleon, MH VSOP, Duchess V.S.O.P., TI White House, Master's Doctor, Shot OLP, and Crown Prince names; rum under the Bonking Matured, Black Colt Matured XXX, Madiraa Premium Dark XXX, TI Nigro He-Mans XXX Matured, and Madira Rock XXX Rare names; vodka under the Castle Club Triple Distilled and Classic names; and gin under the Savoy Club Gin & Fresh Lime and Royal Choice Duet names.
In addition, it provides industrial alcohols, sugar cubes, and packaged drinking water, as well as diethyl oxalate, an ester of alcohol and acid.The company plans to strengthen its presence in the CSD, East, West and exports market. The commissioning of the grain distillery would allow it to tap the exports market better. It is already selling in the W. African countries and is now looking to expand in the E. African markets. In the CSD market, one of its strong brands‐ Madira Rum, has got registered, thereby further strengthening its growth prospects in the CSD market.
TI is also developing its whisky portfolio, the fastest growing and the largest segment in IMFL. It has re‐launched Senate Royal which will compete with McDowells in specific markets. It has launched a new brand‐ BlackPower in Maharashtra and will soon extend it in the A.P. market. The company wants to bring down its dependence on the S.Indian markets from 85% currently to 65% over the next few years, as well as double its share in the national IMFL market to 10%.TI continues to trade at a sharp discount to the leading players, despite stronger growth and return ratios. The stock should outperform the broader market going forward.